India is expected to become a destination for reverse innovation and this form of innovation will become the key strategic positioning of the country across all segments and industries, according to Marketing guru, Jagdish N Sheth, who was in the capital for the launch of Legends in Marketing series by SAGE, spoke to Sarika Malhotra on relationship marketing and competitive strategy.
Sheth also remarked that the market will encompass IT, services, packaged goods, medical instruments, appliances, and automobiles as soon it starts demanding affordability and accessibility.
What post-recession marketing strategies should companies focus on?
Companies will have to learn how to become smarter buyers. That will require the position of a chief procurement officer at a more significant level. Right now, procurement is highly decentralised and no economies are up-scaling procurement. In manufacturing, procurement occupies 65-70% of the total cost. Traditional manufacturing is not sustainable; companies will have to invest in quality – they cannot opt for cheap price and cheap quality. So positioning is not a price market, but a value market. Every segment now demands value. Companies will have to go for a total quality management quickly and invest back in the company, especially the ones who have significant cash flows.
It is expected that marketing will surprisingly become more central at the boardroom level if a brand becomes a platform for trust in context of the Indian market.